Exercise 18-1 Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on drect labor costs. The president has heard of activity-based costng and warts custom. T how the results would differ if this system were used. Two activity cost pools were developed: machinin g and machine setup. Presented below is information relsted to the company's operations Standard Custom Direct labor costs Machine hours Setup hours 41,000 $103,000 1,490 370 1,240 dy Total estimated overhead costs are $304,000. Overhead cost allocated to the machining activity cost pool is $199,000, and $105,000 is allocated to the machine setup activity cost p Your answer is incorrect. Try again Compute the overhead rate using the tradtional (plantwide) aprooch. (Round answer to 2 decimal placesy e.q. 12.25) Predetermined overhead rate of direct labor cost